Negative-Priced Assets. Some Practical Considerations
Partly a by-product of the Covid-19 crisis driving oil demand to an all-time low, the drop into negative territory was exacerbated by a flood of new money into ETFs that track the underlying WTI oil future. Look at the practical issues that a negative asset price can have on trading, settlement, risk and accounting systems. Also, possible actions in preparation for, and to protect against, negative prices, whether in oil or other financial products.